Traders' Tips from TASC Magazine

Tandem Studies on Market Movement

Dima Vonko’s article, “Tandem Studies on Market Movement” describes the calculation and use of the Accumulated Range Ratio indicator form bull markets. The formula for this indicator and the instructions on adding it to MetaStock are:

 

To enter these indicators into MetaStock:

  1. In the Tools menu, select Indicator Builder.
  2. Click New to open the Indicator Editor for a new indicator.
  3. Type the name of the formula
  4. Click in the larger window and type in the formula.
  1. Click Ok to close the Indicator Editor.

 

Name:Accumulated Range Ratio Bull

Formula:

  • smd:=Input("Month and Day at start of the trend [ mmdd ]",1,1235,103);
  • sy:=Input("year at start of the trend [ yyyy ]",1,3235,2007);
  • cmd:=Input("Month and Day at start of the correction [ mmdd ]",1,1235,103);
  • cy:=Input("year at start of the correction [ yyyy ]",1,3235,2007);
  • emd:=Input("Month and Day at end of the correction [ mmdd ]",1,1235,103);
  • ey:=Input("year at end of the correction [ yyyy ]",1,3235,2007);

 

  • sdt:= (Month()=Int(smd/100)) AND
  • (DayOfMonth()=Rnd(Frac(smd/100)*100)) AND
  • (Year()=sy);
  • cdt:=(Month()=Int(cmd/100)) AND
  • (DayOfMonth()=Rnd(Frac(cmd/100)*100)) AND
  • (Year()=cy);
  • edt:= (Month()=Int(emd/100)) AND
  • (DayOfMonth()=Rnd(Frac(emd/100)*100)) AND
  • (Year()=ey);

 

  • tsum:=Cum(If(BarsSince(sdt)>=0,H-ValueWhen(1,sdt,L),0));
  • csum:=Cum(If(BarsSince(cdt)>=0,ValueWhen(1,cdt,H)-L,0));
  • LastValue(ValueWhen(1,edt,csum)/ValueWhen(1,cdt,tsum))

 

This indicator will prompt for three dates:the start of the trend;
the start of the correction;
and the end of the correction. After enter all three values, it will plot a flat line at the value of the ratio.

 

William Golson

Equis International


Contents